Financial analysis is currently undergoing a transformation that is influenced, in part, by today’s fast-moving economy and advances in technology. As companies’ assets become increasingly intangible and decision makers are faced with a myriad of new information, analysis of financial information alone is no longer sufficient for examining, measuring and valuing companies.

This book addresses these issues by incorporating into the more traditional framework of financial analysis a discussion of corporate governance, ethical and trust models, and sustainability problems that are not directly measurable or easily derived from financial accounting reports. It also suggests a modelling viewpoint of information analysis linked with decision makers’ prior perceptions and judgements: by providing a decision process model, financial statement analysis tools can be viewed as part of an active processing mechanism for solving problems. Thus this text transforms what is traditionally emphasized as an ‘input-output and static analysis’ approach to a more ‘dynamic and process’ approach. Readers are provided with relevant case studies and examples for every topic discussed, which include corporate governance and fraud cases in relation to financial statement analysis.

Waymond Rodgers is a Certified Public Accountant and Chair Professor of Accounting in the School of Business at the University of Hull (UK) and part time El Paso Chair Professor at the University of Texas, El Paso.

Anthem Finance

Preface; Acknowledgments; Chapter 1: Introduction: Changing Face of Financial Analysis; Chapter 2: Financial Statement Analysis; Appendix 2.A Coca Cola Case; Chapter 3: Throughput Modelling; Appendix 3.A Johnson & Johnson Case; Appendix 3.B Kellogg Case; Chapter 4: Knowledge-Based Assets Analysis; Appendix 4.A Amazon Case; Appendix 4.B KVA Example; Appendix 4.C Herman Miller Case; Chapter 5: Ethical Modelling and Corporate Governance: Enhancing Financial Analysis; Appendix 5.A Unethical Behavior Leads to Decreased Company Valuation; Appendix 5.B Ethical Issues; Chapter 6: Financial Statements and Fraud Issues; Appendix 6.A FBI – Financial Crimes Report; Chapter 7: Relational Risk: Trust Models Impacting on Brand Recognition; Appendix 7.A Netflix Case; Chapter 8: Sustainability Measures Improving Corporate Governance; Appendix 8.A Nike Case; Chapter 9: Conclusion; Index